Nike Beats Estimates, Rises 3% After Market

By Sam Mamudi

Nike (NKE) shares are up more than 3% in postmarket action, after the sportswear company said its fiscal second-quarter profit was $1.14 a share, ahead of the $1 a share estimated by Wall Street.

Nike has been freely spending its cash recently, launching an $8 billion share buyback program in September on the heels of concluding a prior $5 billion program. Last month it raised its dividend by 17%.

The stock, which closed at $99 Thursday, has a mean target price of $103.55 and is rated a consensus Buy, according to FactSet. Late last week I wrote about JPMorgan’s call on Nike as a Hold.

Nike’s stock has been a curious underperformer this year, rising just 2.7% in 2012.

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